Prebaked anode prices likely to trend higher on surging coal tar pitch prices

SHANGHAI, Jun 2 (SMM) – Prebaked anode prices remained stable last week, but are likely to rise on rising raw material prices. On the cost side, prices of petroleum coke from local refineries dropped 20-50 yuan/mt. However, spot prices of modified coal tar pitch in Shandong rose significantly from the beginning of the month to 5,400-5,500 yuan/mt, which will provide solid cost support to prebaked anode prices.

Supply increased slightly. Guizhou Luxing Carbon New Material commissioned the roasting combustion control system of its phase one prebaked anode project with an annual capacity of 300,000 mt.

On the demand side, about 2-10% of aluminium capacity in Yunnan has been affected by power shortages, which is estimated to lead to a monthly loss of 100,000 mt of aluminium output. Due to insufficient power from the Southern Power Grid and self-owned power, Guangxi Baikuang Tianlin and Guangxi Debao suspended resumption of production.

Aluminium plants are expected to raise prebaked anode tender prices by 180-220 yuan/mt for delivery in June. The upside room of prebaked anode prices may be limited as demand from aluminium plants will decrease slightly in June-July and as Yunnan Aluminium Sunstone and Guizhou Luxing commissioned new prebaked anode capacity recently and producers in north China also increased production.